R-Infra posts 14% fall in Q4 profit at Rs.621 crore

R-Infra posted a 2.29% year-on-year decline in revenue from the electricity business to Rs. 3642.85 crore for the quarter while it registered a 61.4% drop in the EPC and contract business at Rs. 886.44 crore.

Reliance Infrastructure Ltd (R-Infra), the infrastructure arm of the Anil Ambani-led Reliance Group, posted a 14% fall in fourth quarter profit. Net profit fell to Rs.621.42 crore for the three months ended 31 March from Rs721.44 crore in the year earlier.

The decline was largely due to a drop in sales of various business segments of the company. Total operating revenue of the company fell 24% to Rs 4707.69 crore from Rs. 6187.35 crore a year ago. R-Infra’s profit beat analysts’ estimates.

A Bloomberg poll of earnings estimates pegged R-Infra’s net profit at Rs.499.1 crore and net sales at Rs4,285.9 crore. R-Infra posted a 2.29% year-on-year decline in revenue from the electricity business to Rs3642.85 crore for the quarter while it registered a 61.4% drop in the EPC (engineering, procurement and construction) and contract business at Rs886.44 crore.

The infrastructure business reported a 9.8% rise to Rs 178.4 crore. Meanwhile, the company said it had completed all project works needed for the launch of a modern metro rail network in Mumbai. “Trial runs for the entire Versova-Andheri-Ghatkopar stretch completed successfully.

Final approval from Indian Railway Board awaited. Project to start commercial operations within Q1FY15,” the company said in a statement. Mumbai Metro One Pvt. Ltd’s (MMOPL), a consortium led by R-Infra, needs a certificate from the commissioner of Metro rail safety, the last statutory approval it requires to start operations.

The 12 km-line linking the eastern and the western suburbs of Mumbai will give residents a public transport alternative to traffic-heavy road connections. Packed suburban commuter trains offer little by way of passenger comfort and only run in a north-south direction, along the length of the island and its suburbs.

Shares of R-Infra gained 17.24% to close at Rs731.75 on Monday on the BSE, while the benchmark index, Sensex gained 1% to close at 24,363.05 points.